Wondering how to start a business and register a company in Mexico?
More and more entrepreneurs consider setting up a company in Mexico these days. The country is one of the most preferred markets in Latin America. One of the biggest reasons why Mexico is this popular is its closeness to Canada and the United States. Moreover, the initial costs of setting up a company in Mexico are cheaper than in other countries.
Many investors who are planning a short-term investment also consider Mexico due to cheap labor costs. You can also hire staff with the help of the state, i.e., Employer of Record in Mexico. This means that you do not have to physically visit Mexico too.
The country is famous for being the second-largest economy in the American continent. Needless to say, the country also has 50 free trade agreements and numerous trade routes to Asia, Europe, and the Americas.
Mexico has quite amazing figures in export too. The country is the 17th largest exporter and is a founder member of the Pacific Alliance. This means that business owners in Mexico benefit from many advantages in their trades. Some of the main export goods include electronics, medical equipment, automobiles, electronics, and unrefined petroleum.
If you are planning to start a business in Mexico, then this guide is for you. Below, you are going to learn how to start a company in Mexico as well as some important tips to consider.
What to Consider While Starting a Business in Mexico?
The following information is not only valid for Mexico but also in most countries. It is worth noting that Mexico is one of the most business-friendly countries in the world. The cheap labor costs also make it an ideal choice for many investors.
However, you need to think twice before starting a company. For example, if you are going to run a business in Mexico, you should avoid highly saturated markets. Just like you, many foreign investors are investing in the country. You may want to invest in markets that offer you more business opportunities.
Another important thing to consider is the type of your company. Depending on the company type, your liabilities and tax rates may vary. Some of the most preferred company types are Sociedad Anónima and Limited Liability Company.
You should hire a reputable expert to identify the main economic activity. As this will contribute to your business plan, this is also a requirement by the local authorities.
You also need a legal representative in Mexico. This person will be responsible for carrying out all kinds of business transactions in the country. Thus, you will not have to visit Mexico too often. We can also recommend working with a tax advisor to understand the tax system in Mexico.
How to Set Up a Company in Mexico?
Starting a company in Mexico is quite straightforward. If you would like to learn more about how to set up a company in Mexico, here are the details you need to know.
First, you need to draft and sign a power of attorney in Mexico. In this way, you will authorize an attorney to carry out your transactions in the country. This means that you do not have to be physically available in the country for everything.
Later on, you need to create your company’s bylaws. This is a legal document that provides information about your company and its purpose. Once you complete the previous steps, you can register your company in Mexico.
This is performed through the Public Registry of Property and Commerce. Here, you will need to provide detailed information about your goals, objectives, and purposes. After completing this step, you can receive your taxpayer identification number. This is performed through the Tax Administration System.
In the last step, you need to open an account in a Mexican bank. As you can carry out this on your own, your legal representative can also do it for you. Now, you can make an investment in Mexico and enjoy your operations.